Security Credit Systems on Your Credit Report: What to Know

Security Credit Systems, Inc. (SCS) has collected debts for medical providers, schools, and commercial businesses out of Buffalo, New York since 1975. The agency holds an A+ BBB rating based on complaint responsiveness, but the rating coexists with a 2017 federal class action over unauthorized credit card processing fees and documented complaints about collecting on discharged bankruptcy debts.

If SCS has appeared on your credit file, the type of debt matters significantly because the agency pursues educational, medical, and commercial accounts with very different documentation requirements.

This guide covers who SCS collects for, the 2017 federal case, specific complaint patterns, your federal rights, and how to handle the account.

Who Is Security Credit Systems, Inc.?

Security Credit Systems, Inc. is a third-party debt collection agency founded in 1975 and headquartered in Buffalo, New York. The company is not currently BBB-accredited but maintains an A+ rating based on its history of responding to and resolving consumer complaints.

SCS collects both as a third-party agent on behalf of original creditors and as a debt buyer, purchasing delinquent accounts directly. That distinction matters when requesting documentation because the chain of ownership on purchased debt is often longer and harder to verify.

Who Does Security Credit Systems Collect For?

SCS serves clients across medical, educational, and commercial sectors. Confirmed clients from BBB responses and court records include:

• Atlanta School of Massage: A documented BBB case describes SCS collecting a $10,131 tuition account for Atlanta School of Massage, producing an electronically signed agreement in response to the consumer’s validation request.
• Dental and medical schools: Harris v. Security Credit Systems (2017) specifically involved dental school debt and unauthorized processing fees charged on credit card payments.
• Healthcare providers: Hospital systems, physician groups, and medical practices refer past-due patient balances.
• Educational institutions: Colleges, trade schools, and training programs refer unpaid tuition and fee balances.
• Commercial businesses: SCS also pursues commercial debt, though the FDCPA’s protections apply only to consumer debts, not business accounts.

2017 Federal Class Action Over Unauthorized Fees

Harris v. Security Credit Systems, Inc. (Case 1:17-cv-00871, W.D.N.Y. September 2017) is a class action alleging SCS violated FDCPA Sections 1692e and 1692f by charging a 2.5% processing fee on credit card payments without contractual authorization from the original dental school creditor.

The complaint specifically alleged SCS used a false, deceptive, and misleading representation by claiming it was entitled to the processing fee when no such authorization existed. The case targeted a standard form letter sent to hundreds of consumers, making it a systemic compliance issue rather than an isolated incident.

If you paid SCS by credit card and were charged a processing fee, that charge may have been unauthorized.

Common SCS Complaint Patterns

BBB records surface specific recurring issues tied to SCS’s collection conduct.

• Collecting on discharged bankruptcy debts: A 2024 BBB complaint describes SCS calling a consumer whose debts were fully discharged in bankruptcy, claiming no knowledge of the discharge despite it being the consumer’s legal obligation to notify each collector.
• Unauthorized bank account debits: A 2025 BBB complaint documents $300 taken from a consumer’s bank account across three months without authorization, requiring the consumer to dispute the charges and change card information.
• Wrong-person collection: Multiple complaints describe SCS pursuing accounts consumers have no knowledge of and no contractual relationship with.
• Refusing to produce original signed contracts: The Atlanta School of Massage BBB case shows SCS claiming it holds only a signed contract with the school, not with the consumer directly, then sending the electronically signed enrollment agreement.

What SCS Cannot Do Under Federal Law

• Charge unauthorized processing fees: The Harris class action established that adding a 2.5% credit card fee without contractual authorization violates FDCPA Sections 1692e and 1692f.
• Continue collection after bankruptcy discharge: Pursuing a debt that has been legally discharged in bankruptcy violates the automatic stay and may constitute contempt of court, separate from FDCPA violations.
• Debit accounts without authorization: Taking money from a bank account outside of agreed payment terms violates the Electronic Fund Transfer Act.
• Collect on commercial debts using consumer protection threats: The FDCPA applies only to consumer debts. If SCS is pursuing a business account, its FDCPA obligations differ from those on personal debts.
• Contact outside legal hours: Calls before 8 a.m. or after 9 p.m. local time violate federal law.

Verify Before Paying SCS

The type of debt determines what documentation to demand. Educational and dental school debts require the original signed enrollment or treatment agreement, a complete itemized billing statement, and confirmation that any credit card processing fees charged were specifically authorized in the original contract.

Medical debts require the original itemized bill with CPT codes, the insurance Explanation of Benefits, and proof insurance was billed before collections. Send a certified validation letter specifying which documents you need and requesting confirmation that no unauthorized fees have been added to the balance.

If you filed bankruptcy and SCS is still pursuing the debt, provide your bankruptcy discharge documentation and demand immediate written confirmation that collection has ceased.

How to Check Your Credit Report

Pull all three reports at AnnualCreditReport.com and look for Security Credit Systems or SCS as the furnisher. Confirm the original creditor name, balance, and date of first delinquency.

If SCS is reporting a medical balance under $500 or a paid medical balance, those entries should not appear under current credit bureau voluntary policies. Dispute any such entry directly with each bureau.

How Long Can SCS Legally Pursue the Debt?

New York allows six years on most written contracts including educational enrollment agreements and medical service contracts. The clock runs from the date of first default, not from when SCS received or purchased the account.

The credit reporting window is a separate seven-year clock from the original date of first delinquency. Any payment or written acknowledgment can restart the civil statute in New York and many other states.

Your Options for Resolving the Account

• Demand fee authorization documentation: If you paid by credit card and were charged a processing fee, demand the specific contract clause authorizing that fee. The Harris class action shows SCS may have charged it without authorization.
• Produce bankruptcy discharge paperwork immediately: If your debt was discharged, send SCS the discharge order by certified mail and file a CFPB complaint if contact continues.
• Dispute unauthorized bank debits through your bank: If SCS has taken money from your account without authorization, dispute each charge with your bank and document every transaction for potential EFTA claims.
• Negotiate deletion with written confirmation: If the debt is valid, require written deletion terms covering all three bureaus before any payment leaves your account.

How to Contact Security Credit Systems

Handle all communication in writing. Send disputes by certified mail with return receipt requested:

• Address: Security Credit Systems, Inc., 100 River Rock Drive, Suite 200, Buffalo, NY 14207
• Phone: (800) 836-4568

Bottom Line

SCS has operated for nearly five decades but carries a 2017 federal class action over unauthorized credit card fees and current documented complaints about pursuing discharged bankruptcy debts and debiting accounts without authorization. Those are serious compliance issues on top of standard collection conduct.

Check every credit card payment you have made to SCS for a 2.5% processing fee and confirm whether the original contract authorized it. If you are in bankruptcy or recently received a discharge, stop all contact with SCS and consult a bankruptcy attorney before responding.

If an SCS account is on your credit file, the right move depends on the type of debt, whether unauthorized fees were charged, and what your payment history with the agency shows.